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Class Action

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Class action
A legal complaint filed by a lawyer or group of lawyers for a group of petitioners with an identical grievance, often with an award proportionate to the number of shareholders involved.

Class Action Lawsuit
A lawsuit that occurs when multiple people, who claim to have been wronged by the defendant in the same or a similar way, seek restitution, even if the alleged wrongs occurred at different times. For example, multiple shareholders may file a class action suit against a company if they suffered losses from similar fraudulent actions. Proponents of class actions lawsuits contend that they allow "the little guy," however defined, to seek justice. Opponents argue that they enrich attorneys and do not necessarily help the actual plaintiffs. See also: Tort reform, Class Action Fairness Act of 2005.


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A study released in January shows that class action and collective action lawsuits are on the rise, and the trend is expected to continue.
More important, Banks was silent on class action attorneys' fees, leaving unanswered the big question of whether amounts paid to class counsel are income to class members.
Class action litigation faces many challenges, but it is evolving, not dying, according to panelists at 'Justice and the Role of Class Actions," a March conference held at the Benjamin Cardozo School of Law in New York City.
 
 
 
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